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HomeMy WebLinkAboutHousing Cmsn - 11/10/09PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETAR DATE: December 10, 2009 SUBJECT: HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held December 9, 2009: ➢ November 10, 2009 Please submit to the Housing Authority Board. Thank you. cc: John M. Wohlmuth, Executive Director L'on i�, £ ri Ie.. BY HOUSG AUTH ( - 0) ON 1--1y-a_Lln VERIFIED BY: RhK Original on file with City Clerk's Office CITY OF PALM DESERT ADJOURNED REGULAR HOUSING COMMISSION MEETING MINUTES NOVEMBER 10, 2009 I. CALL TO ORDER Verna Smith, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Donna Lewis Natalie Russo Verna Smith Jane Turner Wade Tucker Also Present: Richard S. Kelly, Councilmember Liaison Janet Moore, Director of Housing Jessica Gonzales, Management Analyst Patty Leon, Recording Secretary Guest(s): Members Absent: Teresa Vakili, RPM Company Cathy Walker, Senior Management Analyst Veronica Tapia, Redevelopment Accountant II III. ORAL COMMUNICATIONS Verna Smith thanked Natalie Russo for directing October's Housing Commission meeting during her absence. IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of October 7, 2009. 1 Housing Commission Minutes NOVEMBER 10, 2009 With a Motion made by Commissioner Tucker and seconded by Commissioner Lewis the minutes of October 7, 2009 were unanimously approved. A revised copy of the first page of the minutes was distributed to the Commission that highlighted an administrative change to the header to read "Adjourned Regular Housing Commission Meeting". A grammatical correction was made to page 3; perceptive was changed to perspective. V. REPORTS AND REMARKS A. COMMISSION REPORTS Janet Moore updated the Commission on Carlos Ortega Villas, stating that staff is in the process of selecting an architect for the actual design drawing. Interviews will be conducted shortly after the selection is narrowed down. This process will take a few months before a contract is awarded. Verna Smith asked when the ADHOC Subcommittee would be having another meeting. Mrs. Moore anticipates meeting with the ADHOC Subcommittee after the architect is selected. The conceptual design, approved by the subcommittee, will be provided to the architect once selected, and therefore there are no further discussions at this time. B. SUMMARY OF CITY COUNCIL, REDEVELOPMENT AGENCY, AND HOUSING AUTHORITY AGENDA ITEMS AND ACTIONS The summary was reviewed by the Commission. The Commission was also provided with a copy of the Appendix I Affordable Housing Compliance Plan Update; Veronica Tapia and Cathy Walker were present to answer any questions from the Commission. Janet Moore summarized the Compliance Plan. She stated that the Redevelopment Agency is tasked with spending 20% of the monies received from property tax increment for the purpose of providing affordable housing. Every five years both the Redevelopment Agency and Housing Division are required to prepare an Implementation Plan. That Plan outlines all of the goals and projects as well as identifies proposed projects that may be included during that five year period. As part of that Plan the Housing Division is tasked with 2 Housing Commission Minutes NOVEMBER 10, 2009 almost the same responsibility only in much more detail to include housing that was built, housing that will be built, replacement of any units, and how Housing anticipates expending fund dollars over the next five years. In the event the Agency or the Housing Division did not identify a certain project that they might anticipate doing in either plan then that project cannot be done. Mrs. Moore stated that the Compliance Plan was provided to the Commission as informational only, stating that this plan is a component of the Implementation Plan. She noted that staff spent a considerable amount of time in the preparation of the Plan. The Redevelopment Implementation Plan, consisting of four project areas, is approximately 50 to 52 pages and the Housing Compliance Plan is 46; both Plans were quite detailed. Jane Turner inquired if this Plan had anything to do with the stipulation. Mrs. Moore replied that the Plan identified that the stipulation was met and taken into consideration. Donna Lewis asked what the Commission Members' responsibility with the Plan was. Mrs. Moore replied that the Plan was simply provided to the Commissioners to show what the Housing Plan is projected to be for the next five years. There are certain projects that the Commission will be advisory to such as Carlos Ortega Villas which will be constructed by the Agency as part of the Housing Plan but then will be transferred to the Housing Authority for the operation. Carlos Ortega Villas will be a senior complex with approximately 72 units. Mr. Richard Kelly, Councilmember Liaison, added that Carlos Ortega Villas will be constructed with all the advanced, modern, technical, and experimental equipment/upgrades; noting there are lots of reasons to brag about. Wade Tucker asked on the number of units Country Village had. Mrs. Moore stated that Country Village had 66 units and the Agency already identified units to replace those units that were demolished. The rebuilt units on that site will not be considered "replacement units". Replacement units cannot be counted both as production units and replacement units so the Agency considers all units available and identifies which units will give us the 'most bang for our buck'. Since units outside the project areas only count as 1/2 for production, the Agency identified many units outside project areas as "replacement" because those units are counted one for one as long as they are within the jurisdiction's boundaries. 3 Housing Commission Minutes NOVEMBER 10, 2009 Upon question, Mrs. Moore stated that the affordable housing income eligibility limits change on a yearly basis. C. MONTHLY OCCUPANCY STATUS REPORT RPM WEEKLY ACTIVITY STATISTICS The Commission reviewed the Monthly Occupancy Status Report and Weekly Activity Statistics for September. Donna Lewis referenced all the reports provided by RPM Company. She stated that having taken a statistics class in college she was looking for a report with the most information she can get and the easiest way to help her understand where we are with each property. She noted that the report that works best for her is the Monthly Occupancy Status Report where it shows the comparisons from this year to last year. She stated that the Weekly Activity Statistics report is somewhat helpful because it gives you the total units at the beginning of the period as well as the end of the period for that particular month. Regarding Report 1 and 2, she commented that those two reports were not as helpful. She addressed Teresa Vakili and asked if the Commission had to choose two pieces of paper that would provide the most helpful information that they need so that they could do their jobs, which ones would they be. Teresa Vakili stated that it depends on what the Commission would like to see. She stated that she tries to give the Commission all the information possible with regard to occupancy, recertification, and leases as well as monthly average activities on where the properties are according to stipulation. Natalie Russo stated that because of her background she actually preferred Reports 1 and 2 since it shows how much rent the properties are getting per unit and what the expenses are line by line. She further noted that Report 2 was informational and helpful and appreciated the information provided referencing the advertising line that denotes the dollar amount spent for the month and how that was important to know. Mrs. Lewis asked what the Commission's role was and if they were an over sight Commission. She expressed that she did not think the Commission was really worried about expenses such as paperclips. Ms. Lewis commented that maybe she was missing something. Janet Moore stated that these reports are created monthly for the benefit of staff as well as the Commission to show where the properties are on a monthly basis. The reports are informational and available for review in case the Commission wants to see a specific line item. With regard to the Commission's role, Mrs. Moore stated that their role is to review the financial aspect and approve the budget every year per property. The Housing Commission is an 4 Housing Commission Minutes NOVEMBER 10, 2009 advisory board to the Housing Authority Board which oversees the actual expenditures by month that are expended from the City's bank account. The Housing Authority has their own bank account with respect to the operations and expenditures of the properties and it is reflected monthly in these reports. RPM has an obligation to create the reports provided to the Commission. In addition, RPM also provides a trial balance on a monthly basis that shows everything they spend which is used to post the books. Mrs. Moore asked if the Commission preferred to review a report that only shows revenue, expenses, and income as opposed to Report 1 and 2 which are more detailed, or maybe add a line to the Monthly Occupancy Status report that just shows overall occupancy by property by month to include overall average rent. The existing reports were originally created to show how much per month is spent on a particular line item and provided to the Commission as informational only with no action required. Jane Turner asked if RPM provided these reports to staff every month and if it was helpful. Mrs. Moore stated that as part of RPM's contract they are required to provide this information that is necessary and useful to the operations of the properties. In addition, RPM is required to maintain occupancy at the income levels identified by the Housing Department. She provided an example that if a property is required to have 32 units at the 35% Area Median Income (AMI), RPM is required to stay within those guidelines. In most cases, that particular property is under the 35% level which means they were not able to find anyone at the 35% level which is acceptable as long as it's lower and not higher. Mrs. Moore stated that she looks at these reports to ensure RPM is complying with the requirement. Ms. Turner stated that these reports are valuable to the Housing Division and felt that the Commission is an advisory board only and have no obligation to scrutinize RPM and point out any problems. Verna Smith suggested that Janet and Teresa further review the reports, given the Commissions comments and concerns. She asked the Commission if they should continue reviewing the reports as they are or would they like to see something different. Mrs. Russo commented that if there was an easier way to provide everything in one report would be fine with her. She referenced Report 2 and reiterated how she felt it was very informational, noting that 85% of these units are very low and how that statistic alone is phenomenal. She expressed that it would be a shame not to have that information. 5 Housing Commission Minutes NOVEMBER 10, 2009 Mrs. Moore stated that she and Teresa can further review these reports as suggested by the Chair. A suggestion was also made to provide box reports that come from the financial system and see if it would be more helpful. She asked the Commission if it was informational to know how many units we have, the type of bedrooms, and what the average rents are for that property. Wade Tucker replied yes and stated that this information is important to know since he lives at one of the properties. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for September. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for September. F. HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. Janet Moore summarized the update, referencing the new item added on the Agenda for discussion under Informational Items. She mentioned that James Conway will update the Commission on the Taos Palms renovation project to include pictures of the construction in process. RPM staff was asked to include all routine and continuous work on the update so that the Commission would have an idea of the daily maintenance at the properties, with the exception of Mr. Wade Tucker who is a resident at one of the properties. Property Managers are tasked to walk the properties at least once a week from one end of the property to the other. Natalie Russo inquired on the $3,000 savings off original low bidders' proposal listed under One Quail Place. Mrs. Moore stated that some of the work done in the sauna rooms was completed by the maintenance staff in house rather than paying a contractor to do the work. Wade Tucker asked about the landscape situation. 6 Housing Commission Minutes NOVEMBER 10, 2009 Mrs. Moore stated that it has been 60 days since the new landscape company has been at the properties. RPM has been doing a great job documenting any concerns that are not up to standard. Staff met with Sierra Landscape again and provided them with a binder outlining the maintenance they are required to do on a continuous basis. In the event another meeting is called to order, Spencer Knight will be invited to explain how the contract should be managed. Staff has been considerate with the fact that they were brought in during scalping and reseeding. However, James Conway brought up a good point with regard to the upkeep of the properties such as debris piling up on the sidewalks for days which is unacceptable and considered a routine maintenance that has nothing to do with learning the properties. There are specific methods by which a landscape company should already know when trimming trees and keeping the properties clean. Mr. Tucker commented that the landscape company is doing a lot better. Teresa Vakili stated that Sierra Landscape is responding to the meeting and how the binder really helped, commenting they have seen an improvement. Mr. Tucker mentioned that he has seen more landscape maintenance workers and felt Sierra Landscape probably underbid the job. Mrs. Moore stated that Sierra Landscape has a few more months to get the properties in shape before the Housing tour takes place, noting this will be their time to shine. Mr. Tucker asked if Sierra Landscape had previous experience with apartment complexes. Janet Moore stated that she was not sure if Sierra Landscape had previous experience. However, she explained how multi -family residential have specific requirements to consider such as the walkways have to be clear, properties are occupied, as well as ingress and egress all day. She noted that Spencer Knight was involved in the bid process and there was nothing to preclude Sierra from doing this job. Mr. Tucker commented that the first time Sierra Landscape started work at Las Serenas they used a huge tracker mower to cut the grass which left high grass in some areas besides having no place to park the tracker. Ms. Vakili mentioned that Spencer Knight had addressed this issue. 7 Housing Commission Minutes NOVEMBER 10, 2009 Mrs. Moore provided a brief update on Taos Palms stating that Phase I is underway and have addressed a significant portion of the structural issues. Several units have already been drywalled. Ms. Vakili commented that the contractor is doing a great job by keeping it clean and orderly. Mr. Tucker asked if there was a problem with Commissioners visiting projects during construction to make sure the job is getting done. Mrs. Moore stated that in most cases these projects are hard hat construction zone areas and may not be safe for visitors. Staff would prefer that if a Commissioner is interested in visiting a project site that they be accompanied by either a City or RPM staff member. She stated that it was staff's responsibility to ensure contractors are complying with their contract. This project was added to the Agenda so that staff can provide updates and pictures during the meetings so that the Commission can be informed on the status routinely. Verna Smith suggested that maybe sometime during the period of improving Taos Palms a tour can be made. Mrs. Moore stated that this property will be toured during the annual Housing Tour. VI. NEW BUSINESS VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. Janet Moore stated that the program is very active. She mentioned how most homeowners are not transiently moving around to new houses but rather fixing up their current homes. The program has had the same amount of applications from July to this date than the entire year last year. There were changes made to the program making it friendlier to the residents in Palm Desert that included manufactured homes as well. 8 Housing Commission Minutes B. TAOS PALMS RENOVATION UPDATE Janet Moore stated that pictures will be available at the next meeting. IX. NEXT MEETING DATE — December 9, 2009 ADJOURNMENT NOVEMBER 10, 2009 Verna Smith, Housing Commission Chair, adjourned the Housing Commission meeting at 4:10 p.m. to December 9, 2009. Patty Leon, Recording Secretary 9